Questions tagged [calculation]

A generic tag to understand the calculations in a specific case. Please give out a sample illustration and ask a specific question. Ideally should also be accompanied by specific subject tags like "credit-cards", "savings-account", "index-funds" etc.

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3
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1answer
324 views

How to determine withholding so at end of the year I neither owe more, nor get a refund?

A while back I was on a W2 job and I would get a large sum on my tax return. At one point I found a calculator that helped me figure out how to configure my W4 so that I would neither owe nor be owed ...
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1answer
2k views

Seasonal Loan Amortization

Hi I can compute a Basic Loan Amortization Schedule, But now I'm trying to Calculate a Seasonal Loan Amortization Schedule . So for example A loan starts at January And Will go on for 3 years, with ...
7
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3answers
2k views

What is the “rule of 70” or “rule of 72” with regards to investment, and how do I apply it?

What is the "rule of 72" (sometimes called the "rule of 70") with regards to investment, and how do I apply it?
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1answer
1k views

How to calculate how far a stock price can drop before a broker would issue a margin call?

Let's say the margin requirement for a stock XYZ is 50%. The current price of XYZ is $150/share. Let us say I put in $100, and borrow $50 from the broker to buy a share. Typically, how far can the ...
2
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2answers
161 views

How to calculate whether it's better to pay my education loan, or my home investment loan?

I have an education loan @ 11.5 % for 1,000,000. I can pay it in 3 years. I am planning to make an investment by buying a home @ 10.5% for 2,200,000. Term = 20 yrs. I am thinking if I sell the house ...
1
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2answers
420 views

Suppose earning an APR of 7% for 5 years, with interest compounded quarterly. What is the EAR? What is the Total Return?

Suppose you earn an APR of 7% for 5 years, with interest compounded quarterly. What is your EAR? What is your Total Return? The part I am confused is "with interest compounded quarterly" The ...
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3answers
4k views

Issuing bonds at discount - computing effective interest rate

Suppose Southwest Airlines issued $100,000 of 9%, 5-year bonds when the market interest rate is 10%. The market price of the bonds drops, and Southwest receives $96,149. First of all, in my textbook ...
2
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3answers
1k views

Equation to determine if a stock is oversold and by how much?

Given a stock, is there any mathematical equation than can determine if that stock is oversold? I will use the equation against all stocks in the market to generate a sorted list of oversold stocks.
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2answers
2k views

Calculating accumulated value of an annuity with changing payments?

In a series of 40 payments the first 10 payments are 10 each, the second 10 payments are 20 each, the third 10 payments are 30 each, and the final 10 payments are 40 each. The payments are equally ...
2
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1answer
110 views

How to calculate interest payments without EBIT

is there a way to calculate interest payments without EBIT. For example if I am searching for Apple Inc. in google finance I don't have Interest Payments in the income statement, there is no EBIT ...
2
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1answer
687 views

Am I doing the math for this long straddle strategy correctly?

I'm looking at making a long straddle trade, and I'm trying to make sure I have the math correct before making the trade. Here are the details in the example I want to work out: I'm using options on ...
2
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1answer
787 views

Net Present Value (NPV) Question?

i hope i'm right here for asking. I'm a little stuck with this question any help is appreciated You have invested 5 million Euro in a wind turbine and expect an annual return of 600,000 Euro (6000 ...
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3answers
1k views

How can I calculate yearly interest of my investment gain?

I'm trying to figure out the yearly interest of a potential investment. Lets say I invested $10 000, 13 days later i cash out and I now have $10 500. The interest here is 4,76% for 13 days. But can I ...
2
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1answer
90 views

When performing wash sale calculations does time of day matter?

For wash sales, I've read there is a 30-day window both before and after an opening trade during which a loss from a closing trade becomes a wash sale with respect to the opening trade's cost basis ...
4
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2answers
7k views

What are the standard industry practices or disclosures for computing compounded interest on retail deposit accounts in the United States?

I'm seeking to understand how my bank calculates the interest on my various deposit accounts (Money Market, Interest Checking, Savings, Certificate of Deposit) in order to simulate and predict it to a ...
3
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3answers
456 views

I'm a programmer and need a formula for calculating overal ROI [duplicate]

I'm programming a web app to track my hedge fund performance. I'd like to find my overall ROI for all time. If I had a beginning balance and my current balance then finding the ROI is easy. For ...
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2answers
13k views

Choosing between two car deals on the same car - NPV

This is basic question, but I have starred myself blind on it - I am stuck. I am not sure which formulae I should use. Here is the story. I am looking to buy a car. I have found two dealerships ...
2
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2answers
980 views

How does this retirement fund calculator work?

I found a retirement fund calculator on web: Inflation rate: 2% 0% 2% 0% Expected return rate: 5% 0% 0% ...
3
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1answer
443 views

IRS returns more money than my calculation - how can I find out where I was wrong?

A couple of months ago I filed the 2012 tax returns. I was expecting a few thousands USD for a refund. Finally, the payment was received in my bank account, and I noticed that the actual refund was ...
4
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4answers
31k views

What's the formula to calculate the monthly or lump-sum investment amount for a desired future value?

Give the following values: Inflation Rate 2% Expected Return Rate 5% Future Value 1,000,000 monetary units Years to Target - 10 What is the formula to calculate the amount of? Lumpsum investment ...
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2answers
290 views

Why is that we discount all the coupons and par amount of a bond at the same rate?

Why is that we discount all the coupons and par amount of a bond at the same rate, our YTM? If we think of each coupon/par as a strip/single bond on its own, wouldn't then each coupon payment be ...
3
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2answers
342 views

Need a formula to determine monthly payments received at time t if I'm reinvesting my returns

I need a formula for how much money I will be receiving monthly and how much I will have in total for any time t (in months). The following is my scenario: I will be investing $900 monthly into a 3 ...
2
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2answers
9k views

How do I calculate the quarterly returns of a stock index?

I was reading an article and it stated something along the lines of (not accurate figures): Quarter | Stock Index % Change In Quarter Sep 2011 | 5.21 Dec 2011 | 4.69 Mar 2012 | 3.20 June 2012 | -...
4
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3answers
14k views

How to calculate Social Security benefits if retiring before the early Social Security age?

How can I calculate my Social Security if I retire before my early Social Security age? I tried to use the official website's calculator, but it required entering too much data, and the website ...
4
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1answer
26k views

How to calculate the closing price percentage change for a stock?

When viewing a stock on Yahoo Finance: http://uk.finance.yahoo.com/echarts?s=ASC.L#symbol=asc.l;range=1d;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=...
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1answer
149 views

What is the formula for the Tesla Finance calculation?

According to http://www.teslamotors.com/true-cost-of-ownership with the fields set to a rate of 3.3%, down payment 10% over a 72 month term, it calculates this to be $980/mo. How did they get there? ...
2
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2answers
7k views

What does Capital Surplus mean?

Given this information below, what does capital surplus mean? When does a capital surplus go up? What is the formula of capital surplus? I have read Wikipedia's definition, and it only seem to ...
3
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2answers
1k views

Annuities question - Equations of value

Chuck needs to purchase an item in 10 years. The item costs 200 today, but its price inflates at 4% per year. To finance the purchase, Chuck deposits 20 into an account at the beginning of each year ...
2
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1answer
1k views

If I lose 20%, what rate of return do I need to break even?

If the account is down 20%, what rate of return over the next year do we need to get to be even, in other words make back the 20% we lost? The rate of inflation in this case is zero.
3
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2answers
239 views

Method for calculating the wisest amount of liability to purchase for car & home insurance?

I've seen the advice to get enough liability insurance as you have in total assets, i.e. if your owned home, owned car & savings = $100,000, then get $100,000 liability coverage. What is the ...
2
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2answers
25k views

How do you calculate the P/E ratio by industry?

I would like to know how to calculate the P/E ratio by industry. On this website, it displays the P/E ratio for the current stock, the industry and the sector: FINANCIALS DTV.O ...
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1answer
279 views

Calculating required rate of return for an income-generating savings account

Say someone has £1m. They want it to generate an increasing level of income, starting from £25k in year 1, and increasing at a rate 7% + inflation pa, such that the end value of the savings after 20 ...
2
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1answer
13k views

How to determine the final value of a U.S. Savings Bond at maturity?

Is it possible to determine the "final" value of a U.S. Savings Bond on its maturity date? The interest rate is fixed, the compounding periods are known (semi-annually for EE bonds), and the term is ...
3
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3answers
3k views

Negative properties of continuously compounded returns

I'm taking an intro to quant finance course online. I'm trying to better understand the properties and uses of continuously compounded returns. Specifically for this question, how can you have ...
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1answer
1k views

How do I calculate sales tax to many items? [duplicate]

I'm wondering how to calculate sales tax when this situation. Item price is 14.97 and quantity is 7. Sales tax is 9%. 14.97 * 7 * 0.09 = 9.4311 = 9.43 14.97 * 0.09 = 1.3473, rounding up: 1.35 * 7 = ...
3
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3answers
2k views

What is the optimal way to calculate tax: apply tax to each item, then sum the prices, or sum the prices, then apply tax? When are prices rounded?

What is the optimal way to calculate tax? Lets say tax is 7.5% or 0.075. $2.32 X 1.075 = 2.494 --> Rounded: $2.50 You can say that item is $2.50 (tax included) and if you have two items: $2.32 ...
8
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3answers
12k views

In the event of a corporate spin-off, how can I calculate the correct cost basis for each company's shares?

Consider this example: Siemens is going to have a spin-off (next Monday). If I owned, say, 10,000 shares of Siemens bought at an average price of 80 euros, my cost would be 800,000 euros. In the ...
2
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2answers
7k views

How to calculate dividend yield for the Dow Jones Industrial Average (DJIA) index?

This should be fairly straightforward. How do I calculate the dividend yield myself for the Dow 30 / Dow Jones Industrial Average (DJIA)? I'm thinking I just add the last dividend for all the ...
3
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3answers
535 views

What is the theory behind Rick Van Ness's risk calculation in the video about diversification?

In the video, Rick Van Ness states the following scenario: Stock A has a 7% return with +/- 1% risk Stock B has a 3.5% return with +/- 0.5% risk Stock A and B are perfectly negatively correlated. A ...
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1answer
2k views

How do I calculate the total return on a bond series given its yields?

How do I calculate the total return on a bond series given its yields? Is there an equation? I looked at this Investopedia article, but it only refers to stocks in general.
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3answers
3k views

Why does the calculation for percentage profit vary based on whether a position is short vs. long?

In this link here, the point: In a market in which upswings are likely to equal or exceed downswings, heavier position should be taken for the upswings for percentage reasons - a decline from ...
3
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1answer
199 views

How is the dividend payment calculated when an asset is disposed on the ex date? [duplicate]

Example: XYZ Corp pays a $0.25/share dividend - Ex date=1/15/13, Pay date 1/31/2013 I own 100 total shares of XYZ on 1/1/2013 I buy 50 shares of XYZ on 1/15/2013 at 12 PM (increasing shares to 150) I ...
11
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3answers
9k views

Is there a term that better describes a compound annual growth rate (CAGR) when it is negative?

When calculating rates of return for an investment or portfolio over time, whether to report or compare performance, one frequently calculates the Compound Annual Growth Rate (CAGR). I've got a ...
7
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3answers
15k views

Value of Pension in regards to salary negotiations

I've been advised from careers.stackexchange to post this question here as it's more financial than career advice. I've received a job offer from a company and I'm looking to make a strong counter-...
5
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1answer
475 views

Comparing pre-tax versus post-tax health expenses?

I understand the concepts from this question and everything I have read says that the benefit of pre-tax expenses are that they reduce your taxable income. But to keep the math simple, let's say ...
3
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2answers
4k views

Calculating Profit Ratio (Gross Margin)

When looking at a company's income statement to calculate the Profit Ratio (Gross Margin) PM = Net Profit / Sales Do you include "other" revenue in the equation? Example: XYZ Ltd Income Statement ...
2
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1answer
436 views

How do I calculate the interest on my deposits to my landlord?

I was renting from this company called harbor house builders. I started renting from them in 2009 and at that time I was renting an apartment at 650 a month so I put 650 for rent and 650 for deposit. ...
4
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1answer
3k views

How to calculate average drawdown of a trading system?

Let's say that I'm trying to evaluate a FX trading system. I know how to calculate the largest drawdown during a period of time, but how can I calculate the average drawdown or the average largest ...
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1answer
1k views

How do I calculate the dividend yield for Disney Co?

I'm trying to "estimate" the dividend yield for Disney (NYSE:DIS). Let's pretend stock price will stay at $57 and the tax rate is 1%. Is it really the case that after 3 years with this stock the ...
9
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3answers
19k views

How do you do inflation calculations and estimates?

I'm an engineer, not an accountant so I have no idea what formulas to use (or even the proper terms to google for). I've looked around on a couple of google results, but most of the explanations just ...

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